Holding periods and rates (transfers from 23 July 2024)
| Asset | Long-term after | STCG rate | LTCG rate |
|---|---|---|---|
| Listed shares, equity MFs, units of business trusts | 12 months | 20% | 12.5% above ₹1.25 lakh |
| Property (land, building) | 24 months | Slab rates | 12.5% (residents may choose 20% with indexation for pre-23-Jul-2024 purchases) |
| Unlisted shares | 24 months | Slab rates | 12.5% |
| Gold, jewellery, other assets | 24 months | Slab rates | 12.5% |
| Debt MFs bought from 1 April 2023 | Not applicable | Slab rates | Always taxed at slab rates |
| Unlisted bonds and debentures | Not applicable | Slab rates | Taxed at slab rates |
What you can deduct
- Cost of acquisition (or fair market value on 1 April 2001 for older assets)
- Cost of improvement
- Brokerage, stamp duty and legal fees on transfer
- For listed equity bought before 1 February 2018: grandfathered cost (higher of actual cost and 31 January 2018 price, capped at sale price)
Setting off capital losses
Short-term capital losses can be set off against both short- and long-term gains; long-term losses only against long-term gains. Unabsorbed losses can be carried forward for eight years — but only if you file your return by the due date.
Worked example: selling equity mutual funds
- 1Bought units for ₹6,00,000 in 2022, sold for ₹9,50,000 in 2026 — held over 12 months, so long-term.
- 2Gain = ₹3,50,000. Exemption = ₹1,25,000. Taxable LTCG = ₹2,25,000.
- 3Tax at 12.5% = ₹28,125, plus 4% cess = ₹1,125.
Tax ≈ ₹29,250 on a ₹3.5 lakh gain.
